Riot extends $200 million Coinbase credit facility, and bitcoin weakness could mean more sales
The miner locked in fixed borrowing costs and extended maturity, but a shrinking BTC treasury and loan-to-value triggers leave little room for error if prices slide.
What to know:
- Riot has switched its $200 million loan with Coinbase from a floating to a fixed interest rate, with maturity extended by 364 days.
- The company’s bitcoin holdings have fallen to 15,680 BTC from 19,368 BTC at the start of the year, thinning the buffer against loan-to-value triggers that could force collateral top-ups if prices drop.
The updated agreement shows that the loan size and collateral structure stays the same. Riot’s bitcoin, USDC and cash held with Coinbase Custody secure the credit facility. But the maturity has been extended by 364 days, with an option to push it a further year subject to lender approval.
The loan operates under a loan-to-value (LTV) framework that can force collateral top-ups if bitcoin’s price falls sharply. The loan operates under a tiered loan-to-value framework where, under normal conditions, a top-up is triggered if the LTV ratio exceeds 70% and liquidation kicks in at 80%.
Therefore Riot could continue to deplete its treasury if bitcoin continues to show weakness and fund its AI/HPC pivot
Riot shares are down around 9% Tuesday to below $17. The company reports Q1 earnings on April 30.
